Punjab National Bank a good short, says Datta

Punjab National Bank (PNB) is a good short, says Devangshu Datta, Consulting Editor, Business Standard.

Datta told CNBC-TV18, "The private banks are likely to do better on the upside and maybe hold the ground a little more on the downside. Right now Punjab National Bank (PNB) looks like a good short; it hit 52 week low recently. Bank of Baroda still looks like a reasonable short. These are all medium-term positions to hold for five sessions maybe till the end of settlement. Axis Bank today has gone weak so it might be a decent short and if the Bank Nifty drops below 9,000 it probably has quite a bit of ground to lose. There is critical support between 9,050 and 9,125 where it stopped yesterday. If that level is broken it could go quite a bit." He further added, "There has been a sort of defensive move into FMCG, not just ITC but Dabur India, HUL, Colgate, Godrej Consumer; the trend here is that one can get out anytime from the big liquid stocks. Several of them have hit 52 week highs in a market that’s been doing down. So FMCG is risk off. They are very highly valued, their PE are high but if the money has to go somewhere and it refuses to get out of equities then one still have a run up."